A newly built, 190-unit apartment complex in Long Island City has already changed hands for more than $143 million, while it had not yet opened. Brightshore Capital acquired DŌMI, a mixed-income property at 29-24 40th Avenue in the Dutch Kills neighborhood, in a deal that included 133 market-rate units and 57 set aside as affordable housing.
The purchase was made through Brightshore's Opportunity Zone Fund II, according to a company announcement. Brightshore bought the property from a joint venture of SB Development, Hazelton Capital Group and Avenue Realty Capital, and financed the acquisition with a $98.5 million loan from Affinius Capital, the same release states. As Commercial Observer reported, the deal closed at just over $143 million.
DŌMI comprises two residential towers and includes ground-floor retail space, though sources differ on the project's exact footprint. The acquisition release puts the residential space at approximately 125,000 square feet with 4,876 square feet of retail, while SB Development's own project page describes the building as approximately 195,000 square feet overall with 5,500 square feet of ground-floor retail. The developer's site also credits Fogarty Finger Architects with the design, which includes landscaped gardens, a resident library, shared dining space, a fitness center, a co-working lounge and a rooftop terrace. Separately, a project listing from Dair Development names SB Development and 1 Oak Contracting as the building's developers.
Why Investors Are Circling Long Island City
David Greenburg of Affinius Capital called DŌMI a strong asset with top-tier sponsorship and compelling long-term fundamentals, per the acquisition announcement. Brightshore itself pointed to New York City's limited housing supply, steep barriers to new construction and strong renter demographics as reasons the deal made sense, the same release notes.
Rob Vahradian, cited in a report from the same prnewswire release, said Long Island City's residential expansion has been fueled by convenient access to Manhattan, robust transportation links and continued investment in local infrastructure and neighborhood amenities. He added that the limited availability of new residential development opportunities creates an attractive environment for long-term investment, according to the release.
Newmark advised on both sides of the transaction. Eric Roth led the property sale alongside Daniel O'Brien, Adam Spies and Adam Doneger, while a separate Newmark team arranged the acquisition financing, the acquisition announcement states.
A Tax Benefit, and an Unsettled Question
The acquisition release states that DŌMI benefits from New York City's 421-a Affordable New York program, which it describes as providing a 35-year property-tax exemption. That claim comes from the company's own statement rather than a government filing. Government data reviewed from the New York City Independent Budget Office notes more broadly that older 421-a exemptions could run shorter periods, such as 20 or 25 years, while the Affordable New York program extended the benefit period to 35 years for some properties — meaning the exact terms applying to DŌMI specifically remain tied to the company's own characterization.
The sale lands amid a broader wave of Long Island City multifamily activity. Earlier this year, a much smaller 25-unit walk-up at 44-73 21st Street sold for $4.62 million after being marketed at roughly $4.7 million, according to a report from nycmultifamilybroker.com. That property, an approximately 20,312-square-foot fully leased building, sits near Court Square transit within walking distance of the 7 train — underscoring the same transit draw that investors like Vahradian point to in the neighborhood.
A proposed Long Island City rezoning plan has also been circulating, with the New York City Council describing a plan that would rezone roughly 54 blocks to facilitate nearly 15,000 new homes, including 4,350 permanently affordable units, according to a City Council announcement. That figure comes from a council statement and has not been independently confirmed as implemented.
